Psychiatric Solutions, Inc. was an operator of psychiatric facilities in the

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. They were bought out by

Universal Health Services Universal Health Services, Inc. (UHS) is an American Fortune 500 company that provides hospital and healthcare services, based in King of Prussia, Pennsylvania. In 2021, its annual revenues were $12.6 billion. Company history Alan B. Miller, ...

. Joey Jacobs and Bryce DeHaven, former executives of

Hospital Corporation of America HCA Healthcare is an American for-profit operator of health care facilities that was founded in 1968. It is based in Nashville, Tennessee, and, as of May 2020, owns and operates 186 hospitals and approximately 2,000 sites of care, including sur ...

for over 20 years, founded Psychiatric Solutions, Inc. in 1997. On May 17, 2010 Psychiatric Solutions was purchased by Universal Health.

Legal issues

In 2008, ''

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'', in collaboration with the ''

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'' and other news organizations, reported on substandard care, inadequate training, and staffing shortfalls at Psychiatric Solutions, resulting in injuries, sexual assault, and deaths, in a number of their facilities, nationwide. During the investigation, it was discovered that the company was earning nearly two-thirds of its revenue from Medicare and

Medicaid Medicaid in the United States is a federal and state program that helps with healthcare costs for some people with limited income and resources. Medicaid also offers benefits not normally covered by Medicare, including nursing home care and per ...

, maintaining a profit margin of 25%, compared to an average of 6% in other facilities, and employed one-third fewer staffers per bed resulting in higher profits for the organization. The company was fined multiple times for safety violations, and at one facility, the federal government took the unusual step of termination from the Medicare program, and withholding federal funds from one facility, for a period of over four months, costing the organization at least 1.5 million in lost revenue. After CEO, Joey Jacobs, replaced a management team at one facility, saying it would "continue to get better," the problems continued. In March 2010, ''

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'' reported that Psychiatric Solutions was being investigated for breach of fiduciary duty, lying to investors about safety issues at its facilities, and other violations of state laws. Allegations that the director and other company officials made material misstatements and omissions about the company finances and liabilities, in order to inflate stock prices, caused its stock prices to drop, (NASDAQ:PSYS) resulting in large losses for shareholders. As more reports were published about the problems at the company, the

United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a federal executive department of the United States government tasked with the enforcement of federal law and administration of justice in the United Stat ...

(DOJ) began investigations into the healthcare company, and a class action lawsuit was filed alleging shareholder fraud. The company was eventually purchased by

, who also paid $132 million in a settlement with the DOJ and other state agencies, for violations of the False Claims Act.

References

External links

PSI Homepage
{{DEFAULTSORT:Psychiatric Solutions Psychiatric hospitals in the United States Hospital networks in the United States Companies based in Franklin, Tennessee 1997 establishments in Tennessee Companies established in 1997 Medical and health organizations based in Tennessee

Legal issues

Further reading

References

External links